Tensions in the Strait of Hormuz drive oil prices as US and Iran both claim control

Tensions are ongoing over the fate of the Strait of Hormuz with the United States and Iran both claiming control over the strategic waterway.

Ships were seen in the Strait on Saturday, as the Trump administration continues to actively assert that the US Navy is in control of the passage, where about 20% of the world’s traded oil passed before the war.

United States President Donald Trump and his aides insisted a near prewar level of Gulf oil was now making its way out of the critical waterway.

Vice President JD Vance at Thursday’s press briefing said the US escorted about 15 million barrels of oil on Wednesday.

This was after Energy Secretary Chris Wright told CNBC on Wednesday that 17 million barrels were carried through the strait on Monday with assistance from the US Navy.

About 20 million barrels of Gulf oil flowed through the strait prior to the start of the war.

But ship traffic through the strait remains well below prewar levels, according to independent firms that track marine traffic.

Renewed US attacks on targets in Iran and retaliatory strikes from Tehran in the region this week have also hampered the traffic recovery.

Meanwhile, fuel prices in various countries continue to hit record highs, with the recent escalation driving new raises. In the US, diesel soared to an average of $5.85 a gallon for the first time since the start of the conflict.

UK petrol prices also hit their highest level in six months, reaching 163p per litre.